版權(quán)說明:本文檔由用戶提供并上傳,收益歸屬內(nèi)容提供方,若內(nèi)容存在侵權(quán),請(qǐng)進(jìn)行舉報(bào)或認(rèn)領(lǐng)
文檔簡介
Chapter5InvestinginCommonStockContentsRightsofShareholder—Section1PreferredStock—Section2CashDividend—Section3StockDividend--Section4StockSplit—Section5Section1
RightsofshareholderContentsCorporateformofbusinessLimitedliabilityVotingrightsResidualclaimPreemptiverightA.CorporateFormofBusinessCharter-specifiestherelationwiththestateCertificateofincorporation;CorporationEstablishedbyastate12Bylaws-specifiestherelationshipwithstockholders,establishedbystockholders43CertificateofIncorporationIdentifynameofcorporationlocationofprincipalofficePurposeNumberofsharesauthorizedThefirmmayissueUSA:ARTICLEOFINCORPORATIONCertificateofIncorporationB.LimitedLiabilityAcorporationisalegalentitythatisseparatefromitsownersobligationCreditormaysuethecorporationfordefault,butcannotsueshareholdersMaximumlossforastockholderistheamountofhisinvestmentPubliclyheldcorporations
VSPrivatelyheldcorporations
PubliclyheldcorporationsStockholdershavelimitedliabilitiesMaximumlossforastockholderishisinvestmentinthisfirmCreditorsofthefirmcan’tsuethestockholdersPrivatelyheldcorporationsStockholdersdon’thavelimitedliabilitiesStockholdersmaypledgetheirpersonalassetstosecureloansCreditorscansuethestockholdersC.RightsofShareholder1.Votingrightstoelectaboardofdirectors2.ResidualClaim3.PreemptiveRightsC-1VotingrightsEntitlementtherighttovote※onmattersofcorporatepolicymaking※onthecompositionofthemembersoftheboardofdirectorsCorporateGovernanceBoardofdirectorsisresponsibletostockholdersManagethebusinessofcorporationCanbecompaniesornaturalpersonManagementisresponsibletoBoardofdirectorCanbecompaniesornaturalpersonEffectofCorporateGovernanceDemocracyrarelyworks
ShareholderdisperseCohesiveBoardofDirectorsandmanagementNewownermayremovetheBoard
EncouragethemanagementtopursuethegoalsatisfyingshareholdersStatutoryvoting法定投票Function?Theprocedureofvotingforacompany'sdirectors
inwhich
eachshareholderisentitledtoonevotepershareforonecandidateforeachseat.?Majoritygroupprevailoverminoritygroup
?ifyouowned100shares,youwouldhave100votesfor1candidateforeachseatCumulativevotingFunctioneachshareholderisentitledonevotepersharetimesthenumberofdirectorstobeelected.ifyouowned100sharesandthere
were
5directorstobeelected,youwouldhave500votesforonecandidateforoneseat.advantageousforminoritygroup
applyalloftheirvotestowardonepersonforoneseatopportunityforminority※cumulativevotinghelpminoritiestoelectrepresentativesbybandingtogetherandcastingforacandidates※provideopportunitiesimpossibleotherwiseC-2ResidualclaimHowFirmprospers,earningsfluctuateFirmfail,lastclaimonassetsafterallcreditorshavebeenpaidRiskinvolvedC-3PreemptiveRightsDefintion※
therightofcurrentstockholdersto
maintainproportionateownership※
Method:rightofferingOffersharesinitiallytoexistingshareholdersShareholdermayselltheirprivilegeExamplerightoffering※Afirmhas1000shares,youown10010%※Additionalsaleof400sharesThenyouhavetherighttobuy40sharesYouown10%ofthefirmalwaysRationalforeliminating123RightofferingisexpensiveInitialinvestorcouldpurchasesharestogetherwithnewcomerCostsaving;flexibilitySection2
PreferredStockContentsPmonDividendarrearageandCumulativePSRetireandrepurchaseA.Differences--PSvs.CSPro:Apositionsuperiortocommonstock1ReceivingDividendbeforecommonstockholders2Uponliquidation,repaymentbeforecommonstockholdersPSvs.CS1Donothaverightstovote2Dividendfixed--cannotsharegrowthofthecompanyDividendexpressedasadollaramountorpercentagePp147-exhhibit5.1DisadvantagesB.CumulativePreferredstockArrear※Ifafirmdoesnothaveearnings,itwillnotdeclaredividend※Omitthedividend,andthedividendissaidto
beinarrearsCumulativePreferredStock:
apreferredstockwhosedividendsaccumulateiftheyarenotpaid.Cumulativevs.noncumulativeNoearningsOmitteddividendpaidinthefutureMisseddividendnottobemadeupnoncumulativecumulativeInfluenceInfinancedifficulty,toerasearrearagemaymakethethingsworse(Weakenthefirm)Oncefirmregainprofitability,erasingbecomesademonstrationofimprovedfinancialconditionRetireandrepurchaseproconFundscanbeusedfreelyDifficultytochangecapitalstructurePreferredstockisperpetualPricehavetobebiduptoinducesellingSolution--callablepreferredstockContentsRightsofShareholderPreferredStockCashDividendStockDividendStockSplitSection3
CashDividendContentsDividendpolicyPayoutratioDistributionofdividendFormofDividendsDividendCashdividendStockdividendAdividendisadistributionofearningsSourcesofinvestor’sReturnCapitalgainA.DividendPolicy1.Regulardividend2.Regular+extra3.
irregulardividendNosetdividendA-1RegulardividendQuarterlydividendpaymentCommonpracticeinUSAExampleTwicedividendpaymentinoneyearothercountries(China,Japan)preliminaryandfinaldividendExampleofCanononp299A-2.Regular+extraReasons※
companyhadstrongcashflow※
managementdon’twanttoincreasethedividend,incaseofdifficultyinmaintainingthehigherdividendFixedassuredSupplementatgoodyearswarrantedA-3IrregulardividendRealEstateInvestmentTrust(REITs)maintaintheirfavorabletaxstatus:nocorporateincometaxstockholderpaythetaxrequirementbytaxlawofdistribution90%ofitsearningstoinordertobetax-exemptedFluctuatesNosetdividendpaymentA-4DividendPolicyItrelatestotheamountandtimingofanycashpaymentsmadetothecompany'sstockholders.
Thedecisionisanimportantoneforthefirmasitmayinfluenceitscapitalstructureandstockprice.DividendPolicyDifferentpolicyA-4DividendPolicy:investorInvestorswhodislikethepolicyselltheirshares;Ifsellers>buyers,pricefall;Managementwillbeawareofinvestor’sattitude.B.DividendPayoutRatioDividendPayoutRatio:theportionofearningspershare(EPS)thatafirmpaysoutasdividendsCompaniesarenotrequiredtopaydividendsSomecompanieshavehighEPS,butreinvestallmoneybackintocompanyExample—apayoutratioIn2002,HersheyFoodsEarned$2.93Paidcashdividendsof$1.26Payoutratio=$1.26/$2.93=43%Retentionratio=(2.93-1.26)/2.93=57%PayoutratiostabilityConsistency※
distributingacertainportionofearningtoinvestor※
higherearningimplieshigherdividends※rarely
increase
difficulttomaintain※reluctanttodecrease
signoffinancialweaknessFigure11.1onPage298Totaltrends:Therisingearningsduring7years;Thesteadyannualincrementsinthecashdividends;Conclusion:Earningsfluctuatemorethanthecashdividend;C.DistributionofdividendC-2KeydatesfordividendC-1ProcessofdistributionC-3PricechangeC-1ProcessofdistributionDirectorsmeetDeclareadividend
shareholderapprovalReceivedividendIfyouwanttobuyashareforitsdividend,thenmakesureyoupurchaseitbeforetheExDate.ThesharewillloseinvalueontheEx–Date,becausethepersonwhobuystheshareonthatdatewillnotgetthedividend
Symbol-X:Ex–DivTwoimportantdatesC-2DateofRecordImportance:Thedatetodeterminewhoistoreceivethedividend;Theownershipbooksofthecorporationareclosed;DateofRecordReceivethedividendpurchaseEx-dividendDateImportance:Thedayonwhichastocktradesexclusiveofanydividends;2tradingdayspriortothedateofrecord;DateofRecordEx-dividendDate2tradingdaysTobuyDividendreceivedTosettleExampleonPage299Tobesurethatyouownstocksatthedate;YoushouldbuybeforethatdateDistributionDateImportance:Thedateonwhichadividendispaidtostockholders;Maybeseveralweeksafterthedateofrecord;July17DeclareSeptember14Record
September25DistributeExampleofBlack&DeckerC-3PricechangeBuyingorsellingstockontheex-dividenddatemaynotresultinawindfallgainorasubstantialloss.DIV%PE100sLASTNETCHGReyn&ReynREYx0.442.017145322.50+0.31How?ExampleofReynoldsandReynoldsstock:Yearlydividend:$0.44;Quarterlydividend:$0.11;Theclosingpriceonthepreviousday:$22.30Thenetchangeshouldbefiguredfromtheadjustedprice:$22.30minusthe$0.11dividend;ChinaT+1,USA:T+3除權(quán)除息日相關(guān)符號(hào)含義XR:意為除權(quán);XD:意為除息;DR:意為除權(quán)除息。如果是分紅利現(xiàn)金,稱做除息,大盤顯示XD××;如果是送紅股或者配股,稱為除權(quán),大盤顯示XR××;如果是既分紅利又配股,稱為除權(quán)除息,大盤則顯示DR××。這時(shí),大盤顯示的前收盤價(jià)不是前一天的實(shí)際收盤價(jià),而是根據(jù)股權(quán)登記日收盤價(jià)與分紅現(xiàn)金的數(shù)量、送配股的數(shù)量和配股價(jià)的高低等結(jié)合起來算出來的Twofurtherproblems:Ifthestockisclosedat$23.00ontheex-dividenddate,whatisthenetchange?Ifthestockisclosedat$22.00ontheex-dividenddate,whatisthenetchangethen?ConsistencyofDiv.PaymentDatesManyfirmstrytomaintainconsistencyintheirdividendpaymentdates.SomemakepaymentsonthefirstbusinessdaysofJanuary,April,July,andOctober.PublicServiceEnterpriseGrouppaysitsdividendsonthelastdaysofMarch,June,September,andDecember.Benefits:Goodforbothinvestorsandthefirms;Section4
StockDividendContentsDefinitionInfluenceofStockDividendsReasonforstockdividendA.DefinitionStockDividendAdividendpaidinstock;1Aformofrecapitalization2Donotaffecttheassetsorliabilitiesofthefirm3EntriesinequitysectionareaffectedB.InfluenceTheentriesintheequitysectionofthebalancesheetareaffected:Thestockdividendtransfersamountsfromretainedearningstocommonstockandadditionalpaid-incapital.TheamounttransferreddependsonThenumberofnewsharesissuedthroughthestockdividend;Themarketpriceofthestock;Balancesheet-1(beforestockdividendiscarriedout)AssetsLiabilities&EquitiesTotalassets
$10,000,000Totalliabilities$2,500,000Equities:$2parcommonstock2,000,000(2,000,000sharesauthorized;1,000,000outstanding)Additionalpaid-incapital500,000Retainedearnings5,000,00010%stockdividend;Marketpriceofthecommonstockwas$20pershare;Balancesheet-2AssetsLiabilities&EquitiesTotalassets
$10,000,000Totalliabilities$2,500,000Equities:$2parcommonstock2,200,000(2,000,000sharesauthorized;1,100,000outstanding)Additionalpaid-incapital2,300,000Retainedearnings3,000,000=($20-2)×100,000+$500,000=$5,000,000-$20×100,000BalancesheetbeforeandafterstockdividendiscarriedoutAssetsLiabilities&EquitiesTotalassets
$10,000,000Totalliabilities$2,500,000Equities:$2parcommonstock2,000,000(2,000,000sharesauthorized;1,000,000outstanding)Additionalpaid-incapital
500,000Retainedearnings
5,000,000AssetsLiabilities&EquitiesTotalassets
$10,000,000Totalliabilities
$2,500,000Equities:$2parcommonstock2,200,000(2,000,000sharesauthorized;1,100,000outstanding)Additionalpaid-incapital
2,300,000Retainedearnings
3,000,00010%stockdividend;Marketpriceofthecommonstockwas$20pershare;=$5,000,000-$20×100,000=($20-2)×100,000+$500,000Conclusion:Nofundshavebeentransferred;Noincreaseincashandnoincreaseinassetsthatmaybeusedtoearnprofits;Allthathashappenedisarecapitalization:
Theequityentrieshavebeenaltered.Theformationofequityhavebeenaltered.C.ReasonforstockdividendTohidemanagement’sreluctancetopaycashdividends;Tomisleadinvestorsthatitincreasestheabilityofthefirmtogrow;Toincreasethenumberofsharesanddeclinethestockprice;ContentsRightsofShareholderPreferredStockCashDividendStockDividendStockSplitSection5
StockSplitContentsDefinitionInfluenceofStockSplitFormsofstockSplitReasonforstockSplitA.DefinitionStockSplitRecapitalizationthataffectsthenumberofsharesoutstanding,theirparvalue,theearningspershare,andthepriceofthestock.1Aformofrecapitalization;2Lowerthestockprice;3Makeitmoreaccessibletoinvestors;B.InfluenceStocksplitisarecapitalization.ItdoesNotaffecttheassetsorliabilitiesofthefirm;Notincreaseitsearningpower;ThewealthofthestockholderisincreasedonlyifInvestorspreferlower-pricedstockswhichwillincreasethedemandforthisstock.Balancesheet-1AssetsLiabilities&EquitiesTotalassets
$10,000,000Totalliabilities$2,500,000Equities:$2parcommonstock2,000,000(2,000,000sharesauthorized;1,000,000outstanding)Additionalpaid-incapital500,000Retainedearnings5,000,000A2-for-1stocksplit;Marketpriceofthecommonstockwas$20pershare;Balancesheet-2AssetsLiabilities&EquitiesTotalassets
$10,000,000Totalliabilities$2,500,000Equities:$1parcommonstock2,000,000(2,000,000sharesauthorized;2,000,000outstanding)Additionalpaid-incapital500,000Retainedearnings5,000,000Conclusion:Nofundshavebeentransf
溫馨提示
- 1. 本站所有資源如無特殊說明,都需要本地電腦安裝OFFICE2007和PDF閱讀器。圖紙軟件為CAD,CAXA,PROE,UG,SolidWorks等.壓縮文件請(qǐng)下載最新的WinRAR軟件解壓。
- 2. 本站的文檔不包含任何第三方提供的附件圖紙等,如果需要附件,請(qǐng)聯(lián)系上傳者。文件的所有權(quán)益歸上傳用戶所有。
- 3. 本站RAR壓縮包中若帶圖紙,網(wǎng)頁內(nèi)容里面會(huì)有圖紙預(yù)覽,若沒有圖紙預(yù)覽就沒有圖紙。
- 4. 未經(jīng)權(quán)益所有人同意不得將文件中的內(nèi)容挪作商業(yè)或盈利用途。
- 5. 人人文庫網(wǎng)僅提供信息存儲(chǔ)空間,僅對(duì)用戶上傳內(nèi)容的表現(xiàn)方式做保護(hù)處理,對(duì)用戶上傳分享的文檔內(nèi)容本身不做任何修改或編輯,并不能對(duì)任何下載內(nèi)容負(fù)責(zé)。
- 6. 下載文件中如有侵權(quán)或不適當(dāng)內(nèi)容,請(qǐng)與我們聯(lián)系,我們立即糾正。
- 7. 本站不保證下載資源的準(zhǔn)確性、安全性和完整性, 同時(shí)也不承擔(dān)用戶因使用這些下載資源對(duì)自己和他人造成任何形式的傷害或損失。
最新文檔
- 口罩居間協(xié)議合同模板
- 西雙版納原始森林公園游客滿意度調(diào)查問卷
- 2022年3月基金從業(yè)考試證券投資基金基礎(chǔ)知識(shí)真題匯編4
- 客棧入住合同模板
- 按揭買房給合同模板
- 包裝外包協(xié)議合同模板
- 抖音運(yùn)營招聘合同模板
- 礦壓設(shè)備出售合同模板
- 常規(guī)鍍鋅鋼管采購合同模板
- 病人接送合同模板
- 學(xué)校采購課程合同范本
- Starter Unit 2 Keep Tidy!(課件)-2024-2025學(xué)年人教版英語七年級(jí)上冊(cè)
- GB 16174.2-2024手術(shù)植入物有源植入式醫(yī)療器械第2部分:心臟起搏器
- 2024年公安基礎(chǔ)知識(shí)考試題庫及答案
- 橇裝式汽車加油站技術(shù)標(biāo)準(zhǔn)便攜使用版
- 新蘇教版3三年級(jí)數(shù)學(xué)上冊(cè)(表格式)教案【全冊(cè)】
- 2024-2030年中國電子膠粘劑行業(yè)市場發(fā)展趨勢與前景展望戰(zhàn)略分析報(bào)告
- 麥肯錫:2024中國汽車消費(fèi)者洞察報(bào)告(英文版)-2024-08-市場解讀
- 兒童口腔健康宣教課件
- 2024年人工智能(AI)訓(xùn)練師職業(yè)技能鑒定考試題庫(濃縮500題)
- 浙江大學(xué)介紹
評(píng)論
0/150
提交評(píng)論